7 Better Ideas to Getting Loans That Don't Check Credit

30 Jan 2019

7 Better Ideas to Getting a Loan Without a Credit Check

A large portion of Americans don’t know their credit score. But, lots of Americans do know their score — and they know that it’s not good enough for them to get approved for a loan.

Because of this, some people would rather not have their credit checked at all when they need to borrow money.

If you’re currently in this boat, you know that it can be challenging to get a loan without a credit check. But, it’s definitely not impossible.

Read on to learn how you can find and apply for loans that don’t check credit.

Reasons to Look into No Credit Check Loans

There are actually some benefits that come with pursuing a no credit check loan? Some reasons to consider this type of loan include:

A hard credit check could damage your credit and make it even harder for you to get approved for a loan
If you find the right lender, you can get the money you need very quickly
You can get your bills paid on time and improve your credit score, increasing your chances of getting approved for loans in the future

Do any of these benefits appeal to you? If so, you might want to look into applying for a no credit check loan.

How to Get Loans That Don’t Check Credit

If you want to apply for a no credit check loan, these tips will help. Here are seven ideas that will help you increase your chances of getting approved:

1. Work with a Credit Union

For people who have less-than-ideal credit, borrowing money from a credit union is often a better option than borrowing money from a bank.

Credit unions are smaller and tend to take a more personal interest in their members.

If you join a credit union and explain your situation, you might be able to get a loan based on other factors besides your credit score — such as your income or employment history.

2. Get a Co-Signer

If you know your credit score isn’t great, you might want to try to find someone to co-sign your loan with you.

If you get a co-signer, the lender will use his or her credit score instead of yours when determining the terms of your loan. A co-signer also agrees to take over the payments for the loan in the event that you cannot keep up with them.

A co-signer is a great option if you can’t get a loan with your own credit score. But, it’s also a big responsibility, so it can sometimes be challenging to find someone who is willing to do it.

3. Find Other Ways to Get the Cash You Need

If you’re applying for a no credit check loan and need money right away, you might want to consider trying other approaches to get the cash you need.

For example, maybe you can sell off assets to get the money to cover your expenses without taking out a loan.

You could also ask a friend or family member to loan you the money.

4. Work with an Online Lender

Like credit unions, online lenders are often more flexible than traditional banks.

Online lenders often offer a variety of no credit check loan options and are more willing to work with folks who don’t have a good credit score.

Sometimes, the loan terms and interest rates offered by online lenders are better than the terms and rates you can get from a traditional bank. Don’t rule them out!

5. Look into Peer-to-Peer Lending

Another option if you can’t get approved for a loan from a bank or credit union is peer-to-peer lending or micro-lending.

Peer-to-peer lending websites help you to find lenders for loans that are less than $35,000.

In some cases, peer-to-peer lending sites will check your credit score. But, they only do this to set the interest rate for your loan. They won’t disqualify you because your credit score is too low.

6. Consider Payday Loans

Payday loans are a good option if you cannot get approved for another type of loan.

This type of loan is best reserved for when you just need a small amount of money to tide you over until your next payday.

Payday loans come with high interest rates and fees, but they can be worth it if you just need the money for a short period of time and know you’ll soon have the cash to pay it back.

7. Look into Title Loans

You might also want to consider looking into a title loan. A title loan requires you to offer up the title to your car as collateral.

Once you’ve repaid the loan, you’ll get the title to your car back. If you don’t repay the loan within a specific period of time, you’ll lose your vehicle.

Pawn shops, banks, and cash advance businesses all offer title loans.

How to Improve Your Credit Score

If none of the options listed above appeal to you, you will likely need to wait to apply for a loan until your credit score improves.

Of course, this isn’t necessarily a bad thing. If you improve your credit score, you can qualify for loans that have better terms and interest rates.

You can use the following strategies to boost your credit score and increase your chances of getting approved for loans later on:

Obtain a copy of your credit report and correct errors that might lower your score
Avoid charging too much to your credit cards (this throws off your credit utilization rate and hurts your credit score)
Pay your bills on time each month (set reminders or arrange for the money to be automatically withdrawn if you tend to forget when your bills are due)

Remember to check your credit score regularly, too. Your bank or credit union should be able to provide you with your score online. That way, you can make sure it’s improving and catch any issues as soon as they arise.